Chung Ling Co., Ltd. v. United States

829 F. Supp. 1353, 17 Ct. Int'l Trade 829, 17 C.I.T. 829, 15 I.T.R.D. (BNA) 2065, 1993 Ct. Intl. Trade LEXIS 156
CourtUnited States Court of International Trade
DecidedAugust 11, 1993
Docket90-10-00528
StatusPublished
Cited by5 cases

This text of 829 F. Supp. 1353 (Chung Ling Co., Ltd. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chung Ling Co., Ltd. v. United States, 829 F. Supp. 1353, 17 Ct. Int'l Trade 829, 17 C.I.T. 829, 15 I.T.R.D. (BNA) 2065, 1993 Ct. Intl. Trade LEXIS 156 (cit 1993).

Opinion

OPINION

CARMAN, Judge:

Defendant-intervenor contests the International Trade Commission’s remand results in Sweaters Wholly or in Chief Weight of Manmade Fibers from Hong Kong, The Republic of Korea, and Taman, USITC Pub. 2577, Views on Remand in Inv. Nos. 731-TA-448-450 (1992) (available on WESTLAW, ITC database) (Remand Determination). Plaintiffs and defendant seek to have the remand determination sustained. The Court retained jurisdiction over this matter during the pendency of the ITC’s remand investigation.

BACKGROUND

In 1990, the ITC determined that an industry in the U.S. was materially injured by *1356 reason of imports of certain sweaters. Sweaters Wholly or in Chief Weight of Man-made Fibers from Hong Kong, the Republic of Korea, and Taiwan, USITC Pub. 2312, Inv. Nos. 731-TA-448-450 (1990) (1990 Determination). Plaintiffs appealed the ITC’s final determination, and this Court remanded the case to the ITC. Chung Ling Co. v. United States, 16 CIT -, 805 F.Supp. 45 (1992) (Chung Ling I).

In Chung Ling I, the Court held that the 1990 final determination was not supported by substantial evidence on the record and was not otherwise in accordance with law. Id. at-, 805 F.Supp. at 56. The Court remanded the case and ordered the Commission to review four broad areas: (1) producers’ questionnaire data and the adverse inference rule; (2) petitioner’s interference with the investigation; (3) causation; and (4) like product. Id. at-, 805 F.Supp. at 50-56. The Court ordered the following concerning the adverse inference rule issue:

On remand, the Commission may conduct any further investigation deemed warranted to obtain data representative of the [man made fiber (MMF) ] sweater producers’ pricing and the financial condition of the MMF sweater “industry,” as defined in the statute; and/or, the Commission may apply the adverse inference rule against the domestic industry.

Id. at-, 805 F.Supp. at 50.

With respect to the issue of petitioner’s interference with the investigation, the Court held:

In sum, it is the [CJourt’s view that in these investigations NKSA exceeded permissible bounds of communication with its members in aid of the Commission’s investigatory responsibilities. In view of NKSA’s obviously pervasive and suggestive communications with the domestic industry and the Commission’s erroneous finding of a single innocuous contact between NKSA and one of its members, a remand on the interference issue is plainly warranted. On remand, the Commission is directed to conduct a further investigation of NKSA’s interference with the questionnaire responses, reevaluate whether “this is a case in which * * * objectivity [of the questionnaire response data] has been compromised,” ITC Report at 27, n. 77, and reconsider whether to draw an adverse inference.

Id. at-, 805 F.Supp. at 52.

The Court ordered the following concerning the issue of causation:

Due to the flawed pricing definitions in the questionnaire instructions, as described above, the record is not clear concerning that matter. Additionally, the U.S. producer pricing data was inadequate for a thorough underselling analysis. Remand for further investigation and/or clarification of U.S. producer pricing and the importers’ net f.o.b. purchase prices is warranted.

Id. at-, 805 F.Supp. at 54 (citation omitted).

Finally, with respect to the like product issue, the Court held:

In short, the Commission’s like product analysis is supported by substantial evidence and is otherwise in accordance with law, except as pertains to the issue of blends. The [C]ourt must agree with Taiwan plaintiffs [’] contention that the Commission’s finding of a clear dividing line in the U.S. sweater industry based on fiber composition predicated on the minor position of blends in the market is unsupported by substantial evidence. The Commission’s finding of the minor position of blends was significant in the determination of the like product under the clear dividing line standard.... The [C]ourt holds that the Commission’s like product determination, insofar as it was based on a finding of the minor position of blends in the U.S. market, is unsupported by substantial evidence and is remanded for further investigation and/or reconsideration.

Id at-, 805 F.Supp. at 56. The Court concluded Chung Ling I by stating that “[o]n the present agency record, the Commission’s final injury determinations are unsupported by substantial evidence and are otherwise not in accordance with law.” Id. at-, 805 F.Supp. at 56.

On September 25,1992, this Court issued a memorandum and order denying defendant’s *1357 motion to amend Chung Ling I’s remand order. Chung Ling Co. v. United States, 16 CIT -, 805 F.Supp. 56 (1992) (Chung Ling II). Chung Ling II further explained the Court’s remand instructions. In its discussion of “Producers’ Questionnaire Data and Adverse Inference,” the Court stated:

due to the low rate of and incomplete responses, the producer questionnaire data was inadequate to furnish the Commission with any semblance of representative data in critical financial indicators of injury and causation. More, the [Cjourt pointed out that the supplementary information resorted to by the Commission — Bureau of Census statistics — was also inadequate to supply much critical information that was required for an accurate injury determination. In short, the Commission’s final investigations, while clearly “diligent,” were inadequate.

Id. at-, 805 F.Supp. at 61 (emphasis in original). Continuing its discussion of the questionnaire data, the Court stated that the remand order “was couched to afford the Commission wide latitude and discretion in further investigation and/or drawing of an adverse inference.” Id. at-, 805 F.Supp. at 64.

The Court also reviewed its instructions regarding the Commission’s like product determination.

In [Chung Ling /] this [Cjourt held that the Commission’s finding of the minor position of blends in the U.S. sweater market and the significance of that fact in overall like product analysis warranted further investigation and/or reconsideration by the Commission on remand. It is the Commission’s responsibility to assess in light of the overall record the significance of the position of blends in the U.S. sweater market and, in light of the current record, to what extent if any, further investigation of that factual issue is indicated.

Id. at-, 805 F.Supp. at 65 (emphasis in original). The Court concluded its discussion of its remand order by stating that “[ujnder the broad terms of the remand order in [Chung Ling I

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829 F. Supp. 1353, 17 Ct. Int'l Trade 829, 17 C.I.T. 829, 15 I.T.R.D. (BNA) 2065, 1993 Ct. Intl. Trade LEXIS 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chung-ling-co-ltd-v-united-states-cit-1993.